20 October 2024
Dogecoin, the world’s largest meme coin by market capitalization is now flashing a major sell signal, indicating that it may be time for investors to get out fast, and sell off their tokens before a potential decline. This sudden sell signal comes as the Dogecoin price jumped 10% following a recent comment by SpaceX and Tesla Chief Executive Officer (CEO) Elon Musk.
Dogecoin Price Flashes Sell Signal
Dogecoin recently caught the interest of investors after its price dramatically surged by over 10%, surpassing the $0.127 mark in one day. The massive price increase was driven by social media hype and ongoing speculation about future endorsements from Musk, following his statements of a “Department of Government Efficiency (D.O.G.E)” proposal.
Despite the considerable surge in Dogecoin, analysts are cautioning that the price jump may be signaling an impending sell-off. Particularly, Ali Martinez, a popular crypto analyst took to X (formerly Twitter) to warn users that the meme coin was currently flashing a sell signal on the Dogecoin daily chart.
While optimism for Dogecoin turned bullish after its price increase, it seems investors may have to get out of the market fast to preserve their new profits. While some loyal Dogecoin investors may hold on to their assets for the long term, short-term investors may be tempted to cash in on the recent gains.
Based on the Dogecoin sell signal chart, Martinez predicts that the meme coin may experience a brief period of decline typically seen when meme coins experience sharp spikes. However, the analyst has also forecasted that after this short correction, Dogecoin may continue its upward momentum to reach new levels.
The cryptocurrency is currently trading at $0.1446, a significant increase from its price earlier this month which was standing at around $0.11 at some point. CoinMarketCap’s data has also revealed that Dogecoin soared by a whopping 30.49% over the past week and increased by 38.81% in the last month.
It’s clear that the popular meme coin is on a major uptrend, as its chart has been in the green for some time now. Although Dogecoin did see some declines previously, investors’ optimism regarding the meme coin is high as its daily trading volume has increased by 12.29%.
Analyst Says Dogecoin Is Going To $1
A crypto analyst identified as ‘Crow’ on X has confidently predicted a major bullish rally for Dogecoin. On October 18, the analyst predicted that the price of Dogecoin was going to $1 soon, possibly riding the wave of the upcoming crypto bull run.
The analyst shared a distinctive historical Dogecoin chart, covering the period from 2014 to the present, highlighting how the cryptocurrency had previously experienced strikingly similar market movements before hitting a price high. In line with this trend, Dogecoin seems to have created another unique triangle pattern that started in 2021 and has continued into 2024.
It is possible that with the complete formation of this triangle pattern, Dogecoin may see a potential spike to $1. While the predictions remain ambitious speculations, Crow has remained confident, emphatically declaring that Dogecoin is the Bitcoin of meme coins.